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Voluntary Tax Disclosure Program

CM Advocates > Legal News  > Voluntary Tax Disclosure Program

Voluntary Tax Disclosure Program

The Voluntary Tax Disclosure Programme (VTDP) was introduced through the Finance Act, 2020 and seeks to grant relief on penalties and interest on any tax liability disclosed in respect to the period between July 1, 2015 and June 30, 2020.

Successful applicants shall be granted a remission of the penalties and interest due as follows for the next three years:

Year of Application % Remission
Year 2021 100
Year 2022 50
Year 2023 20

In the recent past, the Kenya Revenue Authority (KRA) has sent out some standard communication to taxpayers notifying them to take advantage of the VTDP or they may be subject to KRA audit.

At CM advocates, we remain available to assist you in the process of taking full advantage of the VTDP. Specifically, we shall assist you with the following:

  • Carrying out a tax compliance check on all relevant tax heads and quantify potential tax liabilities;
  • Submission of the application for voluntary disclosure as required;
  • Entering into an agreement with the KRA setting out the payment plan; and
  • Following up with the KRA for the processing of the application and reconciliation of the iTax ledger.

It is important to note that the VTDP does not apply to a taxpayer who:

  • is under audit, investigation or is a party to ongoing tax litigation; or
  • has been notified of a pending audit or investigation by the KRA

In the event that you are not eligible for VTDP, we are ready to support you in the KRA audit or litigation process.

For more information and assistance on the above, please contact our tax advisory team through email at taxteam@cmadvocates.com

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